Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial Results for the Period Ending on 2023-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 2,422 | 2,179 | 11.15 | 2,404 | 0.75 |
| Gross Profit (Loss) | 1,415 | 1,236 | 14.48 | 1,452 | -2.55 |
| Operational Profit (Loss) | 201 | 201 | - | 379 | -46.97 |
| Net Profit (Loss) after Zakat and Tax | 563 | 81 | 595.06 | 250 | 125.2 |
| Total Comprehensive Income | 557 | 198 | 181.31 | 244 | 128.28 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 10,357 | 9,238 | 12.11 |
| Profit (Loss) per Share | 0.63 | 0.09 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Zain KSA achieved the highest net profit in its history, reaching a record SAR 563 million for the period ended 31 March 2023 compared to SAR 81 million in the same period of 2022, a 595% increase.
The reason for the increase in the net profit is mainly due to the following: - An increase in Net Revenue by SAR 244 million, or 11% compared to the same period of 2022. This increase was due to the growth in B2B, 5G, and Tamam. - The cost of revenue has increased by 6.9%. Nonetheless, the gross profit increased by SAR 179 million or 14.5%. - OPEX increased by SAR 195 million while the amortization and depreciation decreased by SAR 16 million - Finance costs increased by SAR 50 million due to the increase in SAIBOR and LIBOR. - Recognition of the Net Gain on sale and leaseback of 3,600 towers to GLI in Q1 2023 of SAR 532 million, excluding any related increase in Zakat. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Zain KSA recorded an increase of Net Profit in Q1 2023 compared to Q4 2022 by SAR 312 million due to the following:
- Increase in revenue by SAR 18 million with an increase in the cost of revenue by SAR 56 million resulting in a decrease in gross profit by SAR 37 million - Increase in Opex by SAR 171 million while the amortization and depreciation decreased by SAR 31 million - Increase in Finance costs by SAR 5 million - Recognition of the Net Gain on sale and leaseback of 3,600 towers to GLI in Q1 2023 of SAR 532 million, excluding any related increase in Zakat. |
| Statement of the type of external auditor's report | Qualified conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | “As at 31 March 2023, the interim condensed consolidated financial statements included ‘Right of use assets’ of SR 815 million (31 December 2022: SR 790 million), ‘Lease liabilities’ of SR 1,044 million (31 December 2022: SR 680 million), ‘Right of use assets - held for sale’ of SR 445 million (31 December 2022: SR 1,000 million) and ‘Lease liabilities - held for sale’ of SR 254 million (31 December 2022: SR 802 million), and ‘Finance cost’ of SR 21 million (31 March 2022: SR 17 million), ‘Amortization of right of use assets’ of SR 37 million (31 March 2022: SR 53 million), and ‘Gain (Loss) on termination of right of use assets and leased liabilities” of (SR 29 million) (31 March 2022: SR 0.6 million). We were unable to obtain sufficient appropriate evidence and complete our review about the carrying amount of those accounts, because of the unavailability of complete information and time limitation imposed by the reporting deadline as of the date of our report. Had we been provided with the required information and completed our review of those account for the period ended 31 March 2023 and prior periods, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial. Our audit opinion on the consolidated financial statements of the Group for the year ended 31 December 2022 was also modified in respect of the same matter.” |
| Reclassification of Comparison Items | NA |
| Additional Information | The total CAPEX investment for Q1 2023 was SAR 37 million to enhance customer service quality further. |
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